EXERCISE 8-14 Sales and Production Budgets LO8-2, LO8-3 The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1,000 2,000 14,000 13,000 The selling price of the company's product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units. Required: 1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to Schedule 1 for guidance.) Calculate the expected cash collections for each quarter of the fiscal year and for the year as a 2. 3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to Schedule 2 for guidance.)